2009 Preliminary Results Announcement

23  March  2010

HIGHLIGHTS

Rajasthan development on track to ramp up production to 125,000 bopd in H2 2010
Further potential in Rajasthan to take production to 240,000 bopd
Greenland four well frontier exploration programme to commence 2010
Well funded with financial flexibility for operations

OPERATIONAL

• Group booked entitlement reserves: 253.9 mmboe (2008: 254.5 mmboe)
• Gross operated production: 77,222* boepd (2008: 76,298 boepd)
• Average net entitlement production: 20,307* boepd (2008: 12,801 boepd)
  *includes Rajasthan boepd production for 125 days

India

Rajasthan Resource Base

• Discovered in place resource increased from 3.7 billion boe to 4 billion boe
• Exploration potential increased; Prospective in place resource estimated 2.5 billion boe
• Block total potential in place resource now 6.5 billion boe
• Resource base provides potential to produce 240,000 bopd

Rajasthan Development

• Processing Train One complete and currently producing ~20,000 bopd
• Trains Two and Three at the Mangala Processing Terminal (MPT) to be ready Q2 2010
• 600 km pipeline from MPT to Salaya to be commissioned Q2 2010
• Sales arrangements in place for 143,000 bopd
• Production expected to ramp up to 125,000 bopd in H2 2010
• Development wells indicate Mangala production potential of 150,000 bopd subject to GoI approval

Greenland

• Geophysical surveys across west, south and eastern Greenland acquired in 2009
• PETRONAS became a 10% partner in existing operated blocks
• Two drilling rigs secured for multi-well offshore exploration programme summer 2010
• Preparations for 2010 geophysical surveys and exploration drilling underway
• Four planned exploration wells target ~1.6 billion of risked oil in place and ~385 mmbbls of risked resources, (16 billion of unrisked oil in place and  4.1 billion bbls unrisked resources) (gross mean figures)
• Pre-qualified as Operator for the 2010 Baffin Bay Bid Round

FINANCE

• Group gross cash balances of ~$1.2bn
• PLC/Capricorn net cash of $596m with a further $64m received in 2010 following the PETRONAS farm-in to Greenland
• Cairn India Ltd (CIL) gross cash $594m, net debt of $96m and following the $1.6bn refinancing during the year, CIL has committed undrawn loan facilities of $923m
• Profit after tax before exceptional items of $52.7m (2008: $10.9m)

Sir Bill Gammell, Chief Executive of Cairn Energy PLC said:

“Following twenty years of building a material South Asian business we are reaching a defining moment in Cairn’s history.

The phased Rajasthan development is set to produce 125,000 bopd later this year with multiple buyers now lining up to take crude through the pipeline. The basin resource base continues to grow and has the potential to take production up to 240,000 bopd.

The growth in India has enabled the company to position itself as an early entrant in frontier acreage in Greenland. By creating substantial strategic positions in two undrilled basins 1,500 kilometres apart, Cairn continues to offer shareholders exposure to transformational upside through high risk exploration.”

Enquiries:

Cairn Energy Live Audio Webcast

The webcast of the 2009 preliminary results presentation will be available at 0900 (UK time) on Tuesday 23 March 2010 on the Cairn Energy PLC website: www.cairnenergy.com.  An archived version of the webcast will be available later.

These materials contain forward-looking statements regarding Cairn, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Cairn undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn's expectations with regard thereto or any change in circumstances or events after the date hereof.

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